‘Whether we are ready or not, mankind now has a completely integrated financial and informational market place capable of moving money and ideas to any place on this planet in minutes.’
W. Wriston, Risk and Other Four-letter Words, p. 132, The Executive's Book of Quotations (1990), p. 150.
After completing this chapter you should be able to:
- Explain and discuss the main divergent forces.
- Understand the macro and micro approaches to the classification of international accounting practices.
- Understand the accounting systems and environments in France, Germany, China, the UK and the US.
- Examine the convergent forces upon accounting, especially harmonisation in the European Union and standardisation through the International Accounting Standards Board.
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- Global trade and investment make national accounting very constrictive.
- Divergent forces are those factors that make accounting different in different countries.
- The main divergent forces are: objectives, users, sources of finance, regulation, taxation, the accounting profession, spheres of influence and culture.
- Countries can be classified into those with macro and micro ...